Sources reviewed
The Saudi legal rule
A disputed claim can be settled despite denial of liability. Waivers are construed narrowly within the rights in dispute. Relinquished claims are extinguished, and the settlement takes effect within the matters it covers and resolves. [1]
What the records establish
Collect the signed settlement and schedules identifying orders and sums. If both projects shared a running account, reconstruct each project’s balance at signature. Preserve the agreed settlement version and attached claims schedule, including excluded invoice numbers in digital form for production. An extract carries the record’s evidentiary weight to the extent it matches that record. [4]
Likely defence and next step
A debtor may invoke “all sums due” while the schedule names one project. Read the wording, schedule and negotiation record together. Before signing, identify released and reserved items and show how each instalment changes the balance.
Applicability on 2026-10-30
Published on 19 June 2023, the law took effect on 17 December 2023. [2][3] It applies to commercial transactions where compatible with their nature and no special commercial provision governs. For earlier events, check whether a party invokes a conflicting applicable provision or judicial principle, or a time bar had already begun to run before commencement. [2]
Sources
- نظام المعاملات المدنية | Saudi Civil Transactions Law 396, 400–402
- مرسوم الإصدار ونفاذ النظام | Promulgation and commencement Royal Decree M/191, clauses V–VI; Civil Transactions Law, art. 721
- أم القرى | Official Gazette Cabinet Resolution 820, publication on 1444-12-01 AH
- نظام الإثبات | Evidence Law 54, 60, 63(1)
Related guides
- When does a supplier’s invoice fall due?
- Delivery was accepted but the invoice is disputed. How do you prove the amount?
- How should a buyer quantify a short shipment?